Toshiba in talks to sell Toshiba Medical Systems – Fujifilm interested

Toshiba, reeling from a $1.3 billion accounting scandal, said it intends to ask for a new 300 billion yen ($2.49 billion) credit line by the end of January to fund a large-scale restructuring.

According to sources close to the matter, Fujifilm is interested in buying Toshiba’s medical systems unit, which manufactures diagnostic X-ray systems, radiation therapy systems and other medical equipment. The sources added that three to four candidates may bid for Toshiba Medical Systems, which could fetch as much as several hundred billion yen, including General Electric and US investment fund Kohlberg Kravis Roberts, with Toshiba hoping to select a buyer by the end of March.

Toshiba recently announced that it will sell a majority stake in Toshiba Medical Systems to outside investors as part of a restructuring plan. At the time, president Masashi Muromachi said Toshiba would sell “at least 50 percent and as much as 100 percent” of the medical business, adding “that will depend on the talk with a buyer, but we already have been approached by several companies.”

Further, the sources said Toshiba plans to narrow down the buyer to a domestic firm, as a sale of the unit to an overseas company could lower the competitiveness of Japanese firms.